Presss Release: State aid: Commission opens in-depth investigation into Italian aid for the Sulcis integrated power plant

The European Commission opened a formal investigation under EC Treaty state aid rules into an Italian aid for the Sulcis integrated coal burning power plant project in Sardinia. Italy intends to subsidise the operation of a still-to-be-built power plant by purchasing part of its electricity at a price which is above the market price. The plant would be required to sell the rest of its electricity to the local energy-intensive industries below the market price. The Commission was concerned that this arrangement may give an undue competitive advantage to the plant operator, who would receive operating aid, and also to the end-users, who would be able to purchase electricity at artificially low prices. The opening of an in-depth investigation gives interested parties the possibility to comment on the proposed measure. It does not prejudge the outcome of the procedure. In the meantime, however, the Commission intends to request Italy to put the project on hold.